Negotiation Process

Negotiation Process

1. Negotiation is a process by which two or more people (or groups) resolve an issue or arrive at a better outcome through compromise. Negotiation is a way to avoid arguing and come to an agreement with which both parties feel satisfied.

   • Types of Negotiation
     • Distributive (win-lose)
       • This operates on a “fixed pie” principle, in which there is only a set amount of value in the negotiation, and one side will walk away with the better deal.
     • Integrative (win-win)
       • Both sides can create value or mutual gains by offering trade-offs and reframing the problem so that everyone can walk away with a win-win solution.
   • 1. Establish objectives
     • A decision needs to be taken as to when and where a meeting will take place to discuss the problem and who will attend. Setting a limited time-scale can also be helpful to prevent the disagreement continuing.
       • 2. Establish other party’s objectives
         • Individuals or members of each side put forward the case as they see it; their understanding of the situation.
           • 3. Frame negotiation as a joint search for a solution
             • The goals, interests and viewpoints of both sides of the disagreement need to be clarified.
               • 4. Identify areas of agreement
                 • This stage focuses on what is termed a ‘win-win’ outcome where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration.
                   • 5. Trouble shoot disagreements: bargain & seek alternative solutions
                     • Agreement can be achieved once understanding of both sides’ viewpoints and interests have been considered.
                       • 6. Agreement and close: summarize and ensure acceptance
                         • From the agreement, a course of action has to be implemented to carry through the decision.
     • Process
   • Elements of Effective Negotiations
     • Relationship: Am I prepared to deal with the relationship?
       • Communication: Am I ready to listen and talk effectively?
         • Interests: What do people really want?
           • Options: What are the possible agreements or bits of an agreement?
             • Alternatives: What will I do if we do not agree?
               • Legitimacy: What criteria will I use to persuade each of us that we are not being ripped off?
                 • Commitment: What commitments should I seek or make?
                   • Conclusion: What is a good outcome?